HB2330 - 551R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 27-514, Arizona Revised Statutes, is amended to read:

START_STATUTE27-514. Commission; appointment; terms; compensation

A. There is created an The oil and gas conservation commission is established in the department of environmental quality. the department of environmental quality shall provide staff support to the commission to administer this chapter.

B. The commission shall consist of the state land commissioner ex officio who shall have no vote, and five members to be appointed by the governor, no not more than three of whom shall be of the same political party. The appointive members shall be United States citizens and shall have been residents of Arizona this state for not less than the five years immediately preceding their appointment. Three members of the commission shall constitute a quorum for the transaction of business.

C. Of the members first appointed, one shall be appointed for a term ending December 31, 1960, and one each for terms ending one, two, three and four years thereafter. Subsequent Appointments shall be for a full term of five years which shall and expire on the third Monday in January in the appropriate year.

D. Appointive members of the commission shall receive compensation as determined pursuant to section 38‑611 for each day actually spent in the performance of official duties. END_STATUTE

Sec. 2. Section 27-515, Arizona Revised Statutes, is amended to read:

START_STATUTE27-515. Administration; powers of the commission; fees

A. The commission shall administer and enforce this article and other laws relating to conservation of oil and gas. The commission and administrative staff, at any time, may enter property and inspect wells drilled for oil or gas, and well records, and shall control property, machinery and appliances necessary to gauge the wells. The department of environmental quality shall provide staff support to the commission to administer this chapter.

B. The commission may:

1. Administer oaths to a witness in any hearing, investigation or proceeding held under this article or any other law relating to conservation of oil and gas.

2. Issue subpoenas requiring attendance and testimony of witnesses and production of books, papers and records deemed material or necessary, and direct service of subpoenas by a sheriff or other officer authorized by law to serve process.

3. Prescribe rules and do all acts necessary or advisable to carry out this article.

4. Collect fees to cover the costs of services, including reproduction of records or any portion of records and copies of rules. The monies collected are not subject to section 27‑523 but shall be deposited, pursuant to sections 35‑146 and 35‑147, by the commission in the fund from which the expenditure was originally made.

5. Publish technical maps, cross sections and reports and sell these materials for fees that will cover the costs incurred in their preparation, reproduction and distribution.

C. The commission may enter into cooperative agreements with agencies of the United States government, with agencies of state or local government or with Indian tribes for the purpose of protection of to protect the fresh water supplies of this state from contamination or pollution brought about by the drilling of any well or for any other purpose of this article.

D. The commission may apply for and accept gifts, devises and donations of books, well records, maps or other materials. All donated materials shall become public records.

E. Monies collected under subsection B, paragraph 5 of this section are not subject to section 27‑523 but shall be deposited, pursuant to sections 35‑146 and 35‑147, in the permit administration fund established by section 49‑455 and shall be used to prepare, reproduce and distribute further publications. END_STATUTE

Sec. 3. Repeal

Sections 41-3022.09 and 41-3022.24, Arizona Revised Statutes, are repealed.

Sec. 4. Section 49-186, Arizona Revised Statutes, is amended to read:

START_STATUTE49-186. Rules; no licensing

A. The department shall adopt rules as necessary to implement section 49‑179. The adoption of rules under this section is not a prerequisite for implementation of this article.

B. The program established by this article ends on July 1, 2020 pursuant to section 41‑3102.

C. B. Title 41, chapter 6, article 7.1 and section 41-1009 do not apply to this article. END_STATUTE

Sec. 5. Repeal

Section 49-238, Arizona Revised Statutes, is repealed.

Sec 6. Title 49, chapter 2, article 9, Arizona Revised Statutes, is amended by adding section 49-360, to read:

START_STATUTE49-360. Monitoring assistance program for public water systems; fees; monitoring assistance fund; safe drinking water program fund; rules

A. The department shall establish a monitoring assistance program to assist public water systems in complying with monitoring requirements under the federal safe drinking water act (P.L. 93‑523; 88 Stat. 1660; P.L. 95‑190; 91 Stat. 1393; P.L. 104‑182; 110 Stat. 1613; 42 United States Code sections 300f through 300j-25), as amended. The program shall provide for the collection, transportation and analysis of baseline samples from public water systems in a frequency sufficient to keep the systems in compliance with the federal safe drinking water act requirements. At a minimum, the program shall include monitoring for the following categories of contaminants:

1. Volatile organic chemicals.

2. Synthetic organic chemicals.

3. Inorganic chemicals except for copper and lead.

4. Radiochemicals.

B. The department shall contract with one or more private parties or statewide nonprofit organizations representing water systems to implement the monitoring assistance program subject to available funding. Contracts shall be awarded for up to three years. Entities with which the department contracts shall:

1. Provide updated monitoring schedules, developed in conjunction with the department, to participating water systems.

2. Take samples for participating water systems, allow for certified operators to take samples and train system personnel to take samples.

3. Assist participating water systems when resampling is required by the federal safe drinking water act.

4. Assist participating water systems to apply for and qualify for available interim monitoring relief and waivers.

5. Provide any other on-site technical assistance necessary to help the participating water systems comply with the monitoring requirements of the federal safe drinking water act.

C. Any public water systems serving more than ten thousand persons may elect to participate in the monitoring assistance program subject to the payment of the fees pursuant to subsection F of this section.

D. The department shall use licensed environmental laboratories as defined in section 36‑495 or laboratories certified or designated by the United States environmental protection agency to analyze samples collected under the monitoring assistance program. The department shall establish specific criteria for measuring contractor qualifications and performance.

E. Each environmental laboratory that the department uses pursuant to subsection D of this section shall deliver copies of the analysis results to the water system owner, the monitoring assistance program contractor and the department.

F. The director shall establish fees for the monitoring assistance program to be collected from all public water systems serving up to ten thousand persons. The participating water systems shall remit these fees to the department for deposit in the monitoring assistance fund.

G. The monitoring assistance fund is established consisting of fees collected from participating public water systems pursuant to subsection F of this section. The director shall administer the fund. If the fund has a surplus after execution of the previous year's contract, any surplus in excess of $200,000 in any year shall be used to reduce the fee for the subsequent year in a manner consistent with the program invoicing system. Monies in the fund shall be used to pay the monitoring assistance program contractors, the environmental laboratories used for the purposes of this section and administrative costs incurred by the department. Monies in the fund are exempt from lapsing pursuant to section 35‑190. Interest earned on monies in the fund shall be credited to the fund. The allowable administrative costs of the department are limited to not more than fifteen percent of monies deposited in the fund annually or one hundred eighty‑four thousand dollars, whichever is less. For the purposes of this subsection, "administrative costs" includes only those costs necessary to do the following:

1. Ensure contractor performance and quality control.

2. Administer the contracts.

3. Collect fees as provided in subsection F of this section.

4. Provide direct technical assistance related to the implementation of the monitoring assistance program only to the extent the department's assistance is required by this section.

H. The safe drinking water program fund is established consisting of monies deposited in the fund pursuant to section 42‑5304. The director shall administer the fund. Subject to legislative appropriation, monies in the fund shall be used to pay for the costs of programs required by this article incurred by the department. Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. Interest earned on monies in the fund shall be credited to the fund.

I. The department shall adopt rules for the monitoring assistance program.

J. Any site visit made pursuant to this section by a monitoring assistance program contractor shall not be regarded as an inspection or investigation. Enforcement actions shall not be taken as a result of these site visits, except that this section does not affect the authority of the department to enforce this article pursuant to section 49‑354. END_STATUTE

Sec. 7. Section 49-455, Arizona Revised Statutes, is amended to read:

START_STATUTE49-455. Permit administration fund; exemption

A. The permit administration fund is established consisting of fees and interest collected pursuant to this article and section 27‑515. The director shall administer the fund subject to annual legislative appropriation. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided in section 35‑313, and monies earned from investment shall be credited to the fund. Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

B. Monies in the fund collected pursuant to sections 49‑426 and 49‑426.01 shall be used to pay for the following:

1. In the case of fees collected pursuant to section 49‑426, subsection E, paragraph 1, all reasonable direct and indirect costs required to develop and administer the permit program requirements of title V of the clean air act.

2. In the case of other fees, administering permits or revisions issued pursuant to section 49‑426 or 49‑426.01 or conducting inspections.

3. All reasonable and necessary costs to provide staff support pursuant to section 27‑515, subsection A 27-514.

C. Monies in the fund collected pursuant to section 27‑515, subsection B, paragraph 5 shall be used to prepare, reproduce and distribute publications pursuant to that paragraph.

D. Not more than five percent of the monies in the fund may be used for the collection of monies, unless otherwise provided under title V of the clean air act.

E. Not more than five percent of the monies in the fund may be used for general administration of the fund unless otherwise provided under title V of the clean air act. END_STATUTE

Sec. 8. Retroactivity

Sections 4,5 and 6 of this act apply retroactively to from and after June, 30, 2020.

Sec. 9. Emergency

This act is an emergency measure that is necessary to pressure the public peace, health or safety and is agentive immediately a provided by laws.